Shares of Doosan, a South Korean holding company for Doosan Robotics, surged on Monday as the robotics affiliate prepared for its highly anticipated initial public offering (IPO). The stock price reached a peak of 151,800 won, representing a significant 30% increase and outperforming the Kospi index.
Doosan Robotics has now entered the book-building process in preparation for its IPO in South Korea. Over the next five days, underwriters will assess investor demand before accepting orders on September 21-22. The holding company, which owns 91% of Doosan Robotics, revealed its plans to issue 16.2 million new shares at an initial target price between KRW21,000 and KRW26,000. With this offering, they aim to raise up to KRW421.20 billion ($315.2 million), effectively valuing the subsidiary at over KRW1.6 trillion.
Leading analysts at Meritz Securities have expressed confidence in Doosan Robotics' successful market debut, highlighting its growth potential and undervalued market capitalization. They have estimated the company's value to be around KRW1.9 trillion and anticipate profitability by 2026, with continued robust growth in the future. These projections indicate a projected operating profit margin of 8.7% in 2025, 14% in 2026, and 28.6% in 2027.